Central Valley’s almond boom continues

April 29, 2019

Central Valley Business Times

• New report shows growth in acreage given over to almonds
• Five times the size of the total area of Sacramento, Fresno, Bakersfield and Stockton – combined

The acreage planted with almonds in the Central Valley and the rest of the state last year increased by 2 percent from the year before,according to a new report from the USDA’s National Agricultural Statistics Service. Last year, an estimated 1,390,000 acres were devoted to almonds. Almost all of that acreage was in the Central Valley.

The total is up 2 percent from the 2017 acreage of 1,360,000. Of the total acreage for 2018, 1,090,000 acres were bearing and 300,000 acres were non-bearing. And it’s increasing. Preliminary bearing acreage for 2019 is estimated at 1,170,000 acres. That’s five times the size of the total area of Sacramento, Fresno, Bakersfield and Stockton – combined.

Nonpareil continue to be the leading variety, followed by Monterey, Butte, Carmel, and Padre.

Kern, Fresno, Stanislaus, Merced and Madera were the leading counties. These five Central Valley counties had 72 percent of the total bearing acreage.

fhttps://files.constantcontact.com/2cb20f61601/61a12c98-2afa-4584-9edb-4f7de15a96f8.pdf

California unemployment rate rises to 4.3 percent in March

• Employers add 24,500 nonfarm payroll jobs
• Jobless rates ride in all Central Valley counties

California’s unemployment increased to 4.3 percent in March while the state’s employers added 24,500 nonfarm
payroll jobs, according to data released Friday by the California Employment Development Department from two surveys.

California has now gained a total of 3,163,900 jobs since the economic expansion began in February 2010. The U.S. unemployment rate remained at 3.8 percent, and the nation’s employers added 196,000 nonfarm payroll jobs last month.

In March of last year, the state’s unemployment rate was 4.3 percent. The unemployment rate is derived from a federal survey of 5,100 California households.

Nonfarm payroll jobs in California totaled 17,353,500 in March, according to a survey of businesses that is larger and less variable statistically. The survey of 80,000 California businesses measures jobs in the economy. The year-over change from March 2018 to March 2019 shows
an increase of 238,500 jobs (up 1.4 percent).

The federal survey’s results
The federal household survey, done with a smaller sample than the survey of employers, shows a decrease in the number of employed Californians over the month. It estimates the number of Californians holding jobs in March was 18,742,000, a decrease of 17,000 from
February and up 274,000 from the employment total in March of last year. The number of unemployed Californians was 838,500 in
March – an increase of 14,300 over the month and up by 5,200 compared with March of last year. EDD’s payroll employment report (wage and salary jobs) in the nonfarm industries of California totaled 17,353,500 in March, a net gain of 24,500 jobs from February. This
followed a revised gain of 20,900 jobs in February.

Month-over Job Gains
Nine of California’s eleven industry sectors added a total of 30,400 jobs in March. Construction reported the largest increase with a gain of 9,400 jobs. Other sectors adding jobs over the month were professional and business services, manufacturing, educational and health services, information, other services, leisure and hospitality, government, and mining and logging.

Month-over Job Losses
Two of California industries reported job losses over the month. Trade, transportation, and utilities reported the largest decrease with a loss of 5,800 jobs while financial activities had a loss of 100 jobs.

Year-over Job Gains
In a year-over-year comparison (March 2018 to March 2019), nonfarm payroll employment in California increased by 238,500 jobs (a 1.4 percent increase). Ten of California’s eleven industry sectors added a total of 242,700 jobs over the year. The largest job gains were in
professional and business services, up 65,900 (a 2.5 percent increase) and educational and health services, up 64,100 jobs (a 2.4 percent increase). Other sectors adding  jobs over the year were leisure and hospitality, government, construction, manufacturing, information, trade, transportation and utilities, other services, and mining and logging.

Year-over Job Losses
The only industry that posted a year-over decline was financial activities with a job loss of 4,200. In related data, the EDD reported that there were 387,767 people receiving regular Unemployment Insurance benefits during the March survey week. This compares with 389,449 in February and 403,184 in March of last year. At the same time, new claims for Unemployment Insurance were 39,965 in March, compared with 34,593 in February and 39,330 in March of last year. Seasonally adjusted payroll detail follows:

Here are MARCH’s unemployment rates for Central Valley counties, followed by, in parentheses, the rates for February:
• Butte – 6.2 percent; (6.1 percent)
• Fresno – 9.4 percent; (8.9 percent)
• Kern – 10.1 percent; (9.3 percent)
• Kings – 10.3 percent; (9.9 percent)
• Madera – 8.9 percent; (8.2 percent)
• Merced – 11.0 percent; (10.7 percent)
• Sacramento – 4.3 percent; (4.1 percent)
• San Joaquin – 7.3 percent; (7.0 percent)
• Stanislaus — 7.5 percent; (7.2 percent)
• Tulare – 12.1 percent. (11.3 percent)
• Yolo – 5.3 percent; (5.2 percent)
• Yuba – 7.9 percent; (7.8 percent)

https://files.constantcontact.com/2cb20f61601/f776f23d-0e50-40e4-a8e6-961e033ac984.pdf

Goodyear exec to headline Valley business summit

April 20, 2019

For The Madera Tribune

The San Joaquin Valley Manufacturing Alliance (SJVMA) and the Fresno Business Council (FBC) have announced the keynote speaker for Valley Made: The 5th annual Manufacturing Summit. He is Billy Taylor, global director of diversity and inclusion at Goodyear Tire & Rubber Company.

More than 1,000 manufacturing industry attendees are expected to participate in the event to be held on Thursday, May 2, from 7:30 a.m. to 4:00 p.m. at the Fresno Convention Center Exhibit Hall. Sponsorships and exhibit space are still available by contacting Genelle Taylor Kumpe via email ( genelle@sjvma.org), calling 214-0140 or visiting www.valleymadesummit.com.

 Troy Brandt is the new board chair of the local group, succeeding Mike Betts, who will remain on the board as SJVMA’s founding chairman.

Since he was 14, Brandt has worked in  manufacturing at nearly every professional level.

“The growth of both the SJVMA and the ‘Valley Made’ Manufacturing Summit would not be what it is today without the vision, leadership, and guidance of Mike Betts,” said Brandt, who is general manager at Hydratech.

The SJVMA boasts a membership of over 745 business leaders, partner groups, and manufacturers from all sectors throughout the Valley. San Joaquin Valley industry is responsible for nearly $15 billion of the Valley’s Gross Domestic Product (GDP) and employs more than 105,000 people. Due to baby-boomer retirements and the economic expansion, it is estimated that over the next decade, almost 3.5 million U.S. manufacturing jobs will likely need to be filled.

“The SJVMA organizes manufacturers to speak with one voice regarding the development of a workforce needed to sustain and grow manufacturing. It’s our responsibility to ensure that education and government embrace adaptive and innovative educational training solutions in order for the Valley to grow and sustain a strong workforce and strong communities,” said Brandt.

The 5th Annual “Valley Made” Manufacturing Summit is designed as a workshop and resource expo that explains the Valley’s history of innovation in manufacturing while providing resources and networking opportunities that continue to build a well-trained, outstanding workforce. At its core, the Summit promotes cross-sector collaboration aimed at creating a globally competitive environment for the Valley’s manufacturing industry. After four years, the summit has maintained continual growth, yet the focus remains the same, building a future where Valley manufacturing thrives through innovative collaboration, engagement, and creating a culture that cultivates workers that are higher skilled and better educated.

This year’s keynote speaker, Billy Taylor, Global Director of Diversity and Inclusion at Goodyear Tire & Rubber Company is a well-respected figure in manufacturing. Taylor has served as a keynote speaker at numerous events speaking on how to sustain positive results by embracing culture and enabling employee ownership. An advocate for equality and inclusion, he has led diversity and inclusion strategies across the 22 countries where Goodyear operates. His approach has created an exemplary environment where every employee feels engaged and empowered to contribute at their highest level.

Taylor will lead the way for a wide assortment of breakout session topics including cybersecurity in manufacturing, energy solutions for the San Joaquin Valley, how to know your company’s market potential, tax credits and incentives, and many more.

These sessions aim to provide attendees a wealth of information that will educate and inform them of the innovative practices that may allow businesses to stay competitive in the global marketplace.

Community welcomes home Madera HS robotics team after win at world championship

FRESNO, Calif. (KFSN) — MadTown Robotics 1323 is sporting a new title: World Champions.

Fresh off their victory from the 2019 FIRST championships in Houston, the team was greeted at Fresno Yosemite international airport by dozens of family, friends and city leaders.

Even the Mayor of Madera, Andy Medellin, put his Easter plans on hold to congratulate the team.

“In Madera, we all stick together. We’re all there for one another regardless,” he said. “Whether it’s sports teams or academics our schools in general we come together to help support.”

That support system wasn’t only celebrating the victory, the team attributes their success to their parents, mentors, Madera Unified, and their sponsors.

“Most of our mentors are alumni so most of our support comes from the Central Valley,” said team member Roger Villagomez.

Each year more than 4,000 teams around the globe are given specific instructions and a timeline to build a robot for competitions.

“It’s crazy to see where we started just 4 years ago to now right,” Villagomez said.

Off-Site Construction Startup Entekra Selects Modesto as Site for $35-Million Factory that Expands Capacity by 3,000 Units

 

Entekra to Create 250 New Jobs at the Facility, which will be the Most Technologically-Advanced Construction Manufacturing Plant in North America

Entekra

Apr 17, 2019, 12:08 ET

MODESTO, Calif., April 17, 2019 /PRNewswire/ — Entekra™ LLC, the California off-site construction startup with an integrated solution that allows home builders to reduce cycle time while achieving productivity and quality gains, has selected Modesto as the site for its new $35-million manufacturing factory, which will boost annual production capacity by 3,000 units and create 250 new jobs.

Since its founding in late 2016 in nearby Ripon, Entekra has made significant inroads deploying its Fully Integrated Off-Site Solution™ (FIOSS™), as the company is already working or in discussions with a majority of the country’s largest home builders.

“Expanding our operations within the greater Modesto community, which has been supportive of our efforts from Day 1, will allow Entekra to effectively capitalize on the tremendous interest in transitioning to FIOSS from the inefficient and labor-intensive method of stick-framing houses on site,” said Entekra CEO Gerard McCaughey.

The new 200,000-square-foot facility will be the most technologically advanced construction-related factory in North America and will facilitate the servicing of residential housing developments from Bakersfield to the California–Oregonborder.

“The City is honored that Entekra chose Modesto for its flagship state-of-the-art off-site building factory. Entekra is both a leader in its industry and a great fit in Modesto’s strong manufacturing sector,” said Modesto City Manager Joe Lopez.

“We are proud to coordinate with the Stanislaus County Office of Education and Opportunity Stanislaus to answer Entekra’s workforce requirements, and look forward to anchoring its North American success,” Lopez added.

According to Opportunity Stanislaus, the Modesto factory construction represents $61.6 million total impact on the local economy, with the project employing approximately 400 individuals directly and indirectly.

While relatively new to the U.S. market, FIOSS has been leveraged for more than a half-century to build homes in Europeand Asia. It has a proven track record for reducing overall build time by as much as 33 percent, while also reducing skilled labor needs by more than 40 percent – a key consideration given the ongoing labor shortage that has plagued U.S. builders.

Entekra will begin installing automated equipment in the Modesto facility in June and anticipates that the first FIOSS houses will be off-site manufactured and ready for rapid on-site assembly in July.

For more information on Entekra, visit entekra.com.

About Entekra

Entekra (entekra.com) was founded in late 2016 to transform the way houses are built in America with its Fully Integrated Off-Site Solution™ (FIOSS™). Based in Ripon, Calif., the off-site construction company streamlines the build process by completely integrating concept, design, and engineering with off-site manufacturing and on-site assembly. Entekra’s management team is comprised of key executives from Ireland’s Century Homes, who grew that startup into Europe’s largest off-site company and are responsible for nearly 175,000 FIOSS homes assembled on three continents.

SOURCE Entekra

Related Links

https://www.entekra.com

CENTRAL VALLEY TOPS LIST OF U.S. AG COUNTIES

Published On April 11, 2019 – 2:13 PM
Written By David Castellon

California once again led the nation in agricultural sales in 2017, with six Valley counties — along with one along the state’s Central Coast — topping ag sales across the nation.

This according to the U.S. Department of Agriculture’s 2017 Census of Agriculture, which gathers information annually on U.S. farms and ranches and the people who operate them.

Agricultural sales in California exceeded $45 billion in 2017 — about 12 percent of total U.S. ag sales — far outpacing the No. 2 state, Iowa, which had sales totaling about $29 billion, followed by Texas, Nebraska, Kansas, Minnesota, North Carolina, Wisconsin and Indiana.

But while the USDA lists the same top ag counties as the California Department of Agriculture, they don’t list them in the same order.

Most notably, the federal agency lists Fresno County as the top ag county in the nation for 2017.

CDFA placed Fresno County as third in sales that year, behind Kern and Tulare counties, respectively.

CDFA officials couldn’t be immediately reached to determine if the USDA census used different criteria in determining total ag sales.

The other four top ag counties were, in order, Monterey, Stanislaus, Merced and San Joaquin, all of which also are among the top seven ag counties on the USDA’s list.

The top commodities produced on farms nationally were cattle and calves, followed by corn, poultry and eggs, soybeans and milk. California lead the nation in milk production, a total of 18 percent.

Other California highlights from the farm census:

– The state’s top commodities were fruits and nuts, with $17.5 billion in combined sales; vegetables, with $8.2 billion; milk, with $6.5 billion; cattle and calves, with $3.1 billion; and horticulture, with $2.9 billion.

– Total farm production expenses for California totaled $37.8 billion.

– The average age of the California farmer was 59.2 years old, compared to the national average of 57.5 years old.

– Military veterans accounted for 10 percent of California farmers, compared to about 11 percent, nationally.

– At 14,552 farms, California was the top state using renewable energy-producing systems in agriculture. Solar was the most common renewable energy-producing system on farms and ranches in the state.

Central Valley tops list of U.S. ag counties

Change is happening in Fresno schools and the workplace


(Photo: JISC/Flickr)

Developing a strong workforce is critical to the success of our communities and the employment of everyone who wants to work. Figuring out how is crucial.

There is no better place to begin than within our school system. Students that go to schools where they are assigned project-based lessons learn far more than academics and technical skills. They learn to work as a team, how to hold people accountable, why diversity matters, and they develop vital social skills. These students go above and beyond because they don’t want to let their team down. As many of the projects involve real-world business or social problems, they learn what it feels like to make a difference.

Project-based learning is proving to be an effective path to developing a strong workforce and confident life-ready citizens. The good news is that this approach is taking root and spreading.

However, many educators are not prepared to teach this way. Classrooms are designed for students to learn sitting in rows with the “sage on the stage.” Learning to coach, working alongside practitioners from various workplaces, teaching on a team all require a change in mindset and new practices. What we hear from those teachers who have embraced these new practices is remarkable. Working on a team to achieve a meaningful purpose brings out the best in most people. It’s what makes companies, communities and classrooms the places we want to be.

This shift is not limited to the classroom. It is happening in workplaces too. Top-down leadership parallels the sage on the sage model. It is no longer effective. Change is too rapid. Facts don’t stay facts for long and data are overwhelming. Self-governing enterprises are the wave of the future.

Earlier this year, representatives of the San Joaquin Valley Manufacturing Alliance had a meeting with students and teachers at Phillip J. Patiño School of Entrepreneurship, an innovative high school in the Fresno Unified School District. They found the culture remarkable. It was clear that the students AND the teachers want to be there.

As part of the visit, students from Edison High School and Patino presented their projects.

Students from Patino were concerned about the health and well-being of their friends. They decided to put together a package of items to support them. They formed a company and named it Reborn, apt for their goals. Their excitement in forming their own business and filling a need were inspiring. An entrepreneurial mindset is contagious.

The students from Edison are proud “geeks.” Having the opportunity to focus on STEM—Science, Technology, Engineering, Math—they wanted to make sure younger students understood the opportunities. They started a nonprofit with this mission: “Students are told to push themselves, to better themselves in a global economy where success is no guarantee. We students must do this dogma justice: we study, learn, act, work and play with this maxim as we strive to become our best selves.” On our journey of self-improvement, however, many of us forget to bring up our community along the way.” Check out their website here. Clearly they already understand the importance of civic stewardship.

The Democracy Schools projects, facilitated by the Civic Learning Center, are chosen by students in grades 5, 8 and 11. For the past several years their choices were sobering—mental health, teen suicide, date rape, and other difficult topics. This year many of the topics are focused on preventing and de-escalating violence. Their solutions and commitment to executing them are a beacon of hope. Peers impact peers. Team-based projects can change the trajectory of our community both in the classroom and the workplace.

Our country was founded on the principle that we could govern ourselves if we were informed, enlightened and engaged. Our schools are starting to create the environment for this to happen.

Building a strong workforce is our common cause. Success means a whole community call-to-action to support our students by getting involved as advisors and mentors and offering them internships and externships.

An earlier version of this commentary ran in the Fresno Business Journal.

Deborah Nankivell is CEO of the Fresno Business Council.

http://caeconomy.org/reporting/entry/change-is-happening-in-fresno-schools-and-the-workplace

1,000 jobs coming to Central Valley

Central Valley Business Times

April 8, 2019

• They’ll be at a new T-Mobile customer call center in Kingsburg
• Company says it will offer a new level of customer service

T-Mobile U.S. and Sprint have picked Kingsburg in Fresno County as the location for their previously announced Central Valley “Customer Experience Center.” The new call center will have more than 1,000 employees. The companies say the new workers will earn wages on
average over 50 percent higher than the average wages in Fresno County, which will also make the the call center one of the highest-paying employers in the area.

The Kingsburg call center is to have what T-Mobile terms its “Team of Experts” service model, which provides customers direct personal access to a dedicated team of specialists when they call or message for assistance. The specialists are to work with local retail and engineering  eams to address a wide variety of topics and tackle complex challenges for customers primarily based in California.

The combined company will have 7,500 more customer care workers in 2024 than the two stand-alone companies would have employed, they say. It all depends, however, on the closing of their merger to become what the companies want to call the “New TMobile.”

https://files.constantcontact.com/2cb20f61601/aa2510f6-dfc0-42b6-af7e-db406cf9132c.pdf

 

Opportunity Zones’ Spur New State Tax Incentives

 

STATELINE ARTICLE

April 3, 2019

By: Sophie Quinton

 

Editor’s note: This story was corrected April 4. Due to an editing error, an earlier version of this story incorrectly named Novogradac & Co. LLP.

Governors helped the U.S. Treasury Department choose nearly 9,000 economically distressed “opportunity zones” where people can get a tax break for investing in certain businesses and properties. But the 2017 federal tax law that created the zones doesn’t allow governors or state lawmakers to steer investors’ money into certain projects.

They’re trying to influence the market anyway.

This year 17 state legislatures have considered opportunity zone bills, including proposals for additional tax breaks to lure investors or encourage certain projects, such as affordable housing or solar energy development, according to Novogradac & Co. LLP, an accounting and consulting firm that is keeping track.

The federal government is expected to announce a second round of proposed opportunity zone regulations any day now, which would give many investors confidence to start striking deals.

“Through the added incentives, states can encourage the type of development they want to see in opportunity zones,” said Michael Novogradac, managing partner of Novogradac & Company.

Novogradac cautioned, however, that ultimately cities and counties may have more power over what gets built in a zone than states do. Last year, for example, the City Council in Boulder, Colorado, halted some development in its zone, citing the need for more planning.

“I do think they can bend the curve to be sure,” Novogradac said of states. “But at the end of the day it really depends on local government and local policies.”

Trump Tax Break Aims to Turn Distressed Areas Into ‘Opportunity Zones’

Much of the early investment in opportunity zones is flowing into real estate. Sales of undeveloped land, previously developed but vacant land, and properties ripe for demolition and redevelopment surged in zones last year, according to a December report from Real Capital Analytics, a company that tracks real estate markets.

New York City, Los Angeles and Phoenix may be the hottest markets for opportunity zone funds, the report said.

Some state lawmakers want to tip the scales in favor of projects their constituents need but may be riskier or less lucrative than a new hotel or apartment building in a big city.

California Gov. Gavin Newsom, a Democrat, has proposed a state tax break like the federal one, though it would apply only to green technology and affordable housing projects.

Maryland Gov. Larry Hogan, a Republican, wants to lure businesses into zones with additional tax breaks for creating jobs, expanded workforce training assistance, and more funding for affordable housing development and small-business loans, among other incentives.

 

 

Washington state Rep. Mike Chapman also is interested in offering state tax credits to opportunity zone investors who can create jobs in economically depressed rural areas.

“We don’t have a lack of construction work in this state, so it’s not like we need to build more buildings,” the Democrat said. “We need jobs in rural counties that are living wage jobs where people can consistently receive a paycheck.”

A ‘Windfall to Investors’

To get the federal tax break, people must invest earnings from selling stocks, bonds or property in a fund that, in turn, invests in businesses or property in an opportunity zone. Investors who put money into such a fund can defer paying taxes on their gains right away and earn a 15 percent tax cut on the gains after holding their shares for seven years.

Investors who hold their shares for 10 years don’t have to pay capital gains taxes on money they make from those shares.

Most states have adopted a similar tax break. Nine states have not aligned with the federal tax break because they don’t tax incomes. Lawmakers in eight states have either declined to offer the same incentive or haven’t acted yet, according to Novogradac. But it’s not clear that creating a state version of the federal opportunity zone tax break will make much of a difference to investors.

Federal tax law typically influences people’s choices more than state tax law, the California Legislative Analyst’s Office, a nonpartisan adviser to the legislature, said of Newsom’s plan in a recent report. “Any state tax benefit provided would be a ‘windfall’ to investors because they likely would have made the investment even without the state benefit,” the report said.

Some progressive advocacy groups say the state tax breaks are a waste of money.

“It’s going to be going to the investor class, which is not a piece of our society that we need to help,” said Jody Wiser, executive director of Tax Fairness Oregon, a nonprofit pushing to eliminate Oregon’s version of the opportunity zone tax break.

“Most of the money will be spent where money was going to be spent anyway,” she said.

She pointed to zones in downtown Portland that already are filling up with office buildings and trendy restaurants.

Piling on Tax Breaks

Lawmakers are looking for other ways to use the state tax code to spur investment, particularly in businesses.

Encouraging investors to put money into businesses under current opportunity zone rules could be a challenge. State economic development officials have called for clarifying some of the criteria, such as the requirement that eligible businesses must derive half their income within a zone.

That requirement could disqualify “most e-commerce companies, manufacturers, and other businesses with the potential to create significant numbers of new jobs and wealth for their communities,” officials from Rhode Island, Utah and Louisiana wrote in a recent op-ed in The Hill.

West Virginia Del. Joshua Higginbotham, a Republican, has proposed giving investors in zone businesses a 10-year reprieve from state income and business taxes.

“What we wanted to do in West Virginia,” he said, “is make sure that our 55 opportunity zones are the most competitive of any opportunity zones in the country.”

Last week West Virginia Republican Gov. Jim Justice vetoed Higginbotham’s proposal, but the legislator said he plans to push his bill again during an upcoming special session without the amendments Justice opposed.

Washington’s Chapman wants his state to offer $60 million in business tax credits to investors in opportunity zone funds focused on rural, economically depressed counties.

Funds would need permission from the state Department of Commerce to pass on the credits, and if they were to misuse the taxpayer dollars, they’d have to pay the state back.

The Senate has amended the bill to conduct a study on rural economic development programs, including tax credits, before the state makes any investments.

In Maryland, Hogan has proposed both new tax credits and expanding existing economic development programs — such as one that pays for the demolition of derelict buildings — to advance projects in opportunity zones.

“We’re really tying together everything that we were already doing and trying to use it to bolster the opportunity zone investment,” said Sara Luell, director of communications for the Maryland Department of Housing and Community Development.

The additional state assistance would be available to any business or real estate project in a zone, she said, even those not receiving money from an opportunity zone fund.

Hogan recently toured a real estate project that will turn 40 acres of parking lots near a light-rail station into a hotel, office space for health care company Kaiser Permanente, apartments, a parking garage, and shops and restaurants.

An opportunity zone fund will help finance the apartment buildings, said Scott Nordheimer, a partner at Urban Atlantic, the company behind the project. But the project also relies on a long list of other incentives, he said, including state income tax credits and Prince George’s County’s multimillion-dollar investment in streets, utilities and other infrastructure on the site.

Without county help, the development would still be a parking lot.

“You could not privately finance the infrastructure,” Nordheimer said.

https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2019/04/03/opportunity-zones-spur-new-state-tax-incentives?utm_campaign=2019-04-03+Stateline+Daily&utm_medium=email&utm_source=Pew